Thailand's new consumer protection law has teeth
By Jon Fernquest |
Thailand will soon have a new set of laws designed to protect consumers.
The provisions of the new law modify some of the flaws in the current system that allow unscrupulous business people to cheat customers.
When my next door neighbor in Maesai, a wealthy and streetwise business woman who does business on both sides of the Thai-Burmese border, told me that an air conditioning shop in Chiang Rai city, the provincial capital, had installed a second-hand air conditioner in her car after she paid for a new one, I was shocked.
Anticipated court delays meant that she like many others decided not to pursue the matter any further and seek redress.
The lesson for me was simple, trust no one unless you've known them for a long time or perhaps if you have a mutual powerful friend that would cause a considerable loss of face if they cheated you.
Once again, long-term business relations, connections and friendships were all important and basic rule of law could not be assumed. This seems about to change.
The law is apparently yet another pathbreaking law passed by the post-coup interim legislative assembly (NLA) at the end of last year before the end of their tenure. Why do laws that change the system for the good like this only seem to be passed under non-elected parliaments?
Here is the article in full:
New law eases consumer ills
Complaint resolution should be easierKANANA KATHARANGSIPORN
Wednesday August 13, 2008
Consumers will find it easier and faster to complain about unfair contracts, products or services at any court nationwide when the 2008 Consumer Case Procedures Act takes effect on Aug 23. The new law would give consumers more rights, said Teeravath Chantarasomboon, director of legal affairs at the Office of the Consumer Protection Board (OCPB).
Officials would record a consumer's statement, collect evidence and ask the business in question to attempt to settle with the complainant. If they cannot, a lawsuit could proceed.
"It will be more convenient for consumers to complain or sue at any court near their residence. If there is a counter-suit, the party suing must sue only at the court in the area where the consumer lives," he said.
In the past, he said, some consumers had lost cases as they were unable to travel to the civil court.
Speedy resolution of cases
Currently, consumers can complain to the OCPB, by mail, e-mail, the 1166 hotline or at the city hall in each Muang district.
"The prosecution process will also be faster," said Mr Teeravath.
If a new suit by a consumer is a repeat of an earlier one against the same party for the same reason, there will be no trial and the judgment would be based on the previous complaint.
Courts will process cases with a minimum of delays; only one postponement of 15 days or less is allowed. Trials will be handled by only two courts: the court of first instance and the appeal court.
New law fairer to consumers
"The new act will be fairer to consumers. It will force entrepreneurs, which have more bargaining power than consumers, to prove their cases," said Mr Teeravath.
"If it's proved that the entrepreneur is at fault, the entrepreneur will have to be responsible for all expenses including those of consumers."
Consumers will be exempt from fees including court fees, commissions, witness and lawyers' fees unless the suit is found to be unreasonable or the damages sought are judged to be excessive.
Impact on real estate industry
The changes could have significant impact for the real estate industry.
For example, if property firm cheats buyers or dishonestly transfers assets to others and the remaining assets are not enough to pay debts, its shareholders would also be defendants and be responsible for the debt.
According to OCPB figures from October 2007 to June 2008, consumer complaints totalled 4,210. Real estate accounted for 1,901 cases or 45.15% (see chart), followed by products and services at 30.40%, advertisements 18.58% and direct sales and marketing 5.87%.
Of the complaints about contracts and real estate, 1,200 were real estate cases and most ended with reconciliation as both consumers and developers tried to avoid court action.
Mr Teeravath suggested that consumers keep all contracts, receipts, brochures or advertising documents to support their cases. If they are lost, consumers could report the loss to the police and use the notification as documentary evidence.
To learn more, visit www.ocpb.go.th
(Source: Bangkok Post, business, 13-08-08, KANANA KATHARANGSIPORN, temp-link)
Vocabulary:
Legal Terminology
a complaint - a legal statement charging a person with a criminal offense that sets out the facts on which the claim is based (can also mean an informal expression of displeasure, such as poor service at a store)
the complainant - the person making the complaint
resolution - the process of finding a solution to a problem, resolving a problem (See glossary on resolve)
complaint resolution - solving the problem that caused the complaint (either helping the two sides reach an agreement or punishing the company, if they cheated a consumer)
settle with the complainant - payment of money or some action solving the problem, rather than by legal penalty
a settlement - the money paid or action done by the company to the consumer making the complaint
2008 Consumer Case Procedures Act - Thailand's new consumer protection law
takes effect - when a new law becomes active and can be enforced
provisions of a law - arrangements to deal with problem included in a law
Office of the Consumer Protection Board (OCPB) - the office of the Thai government that deals with consumer complaints against businesses that have cheated them (See website)
a lawsuit - a case in a court of law that involves a dispute between two sides
a counter-suit - a lawsuit that is a response to another lawsuit (a lawsuit against the person who started a lawsuit against you)
sue - start a legal case against someone to claim money from them because they harmed you
a judgment - the money that a court awards someone in a lawsuit
a trial - the formal meeting in a law court where judges listen to the evidence and decide the legal case
a postponement - when a legal case is delayed for a time
court of first instance - the first court to hear and decide on a legal case
an appeal court - the court that reviews a legal case after it has been decided (to make sure that the law has been applied and interpreted correctly)
review Y - go over Y, checking the details of Y, to make sure they are okay
reconciliation - ending a dispute or disagreement
notification - officially informing someone of something (here means the police are officially informed that a crime has been committed)
evidence - information used in a court of law to prove something
documentary evidence - evidence in writing
Other Vocabulary
has teeth - (See glossary on toothless)
a flaw - a mistake, imperfection, or undesirable quality
unscrupulous - a person prepared to act in a dishonest way to get what they want
cheat customers - behave dishonestly without customers, give customers something different from what was agreed on
pathbreaking - new and innovative
tenure - the period of time someone serves in their position
streetwise, streetsmart - a person who has a lot of practical experience and knows how to deal with difficult and dangerous everyday problems (often beyond the law)
X anticipated - people believed that X was going to happen
a matter - a situation with problems that you have to deal with
pursue the matter - continue working on the problem (to improve the situation)
decided not to pursue the matter any further - decided not to continue working on solving the problem
seek redress - try to do something to improve the situation for someone who has been wrongly treated
the rule of law - a legal system in which rules are clear, well-understood, and fairly enforced, including property rights and enforcement of contracts
a hotline - a telephone line that provides a quick response to a problem
X based on Y - X developed from Y, X was built using Y as foundation
negotiations - formal discussions between two groups to reach an agreement
bargaining power - how much power you have to get the agreement you want in negotiations
Y at fault - Y is to blame for the problem, Y is the cause of the problem
